Puerto Rico Treasury Explains Revocation Consequences of Tax Exemption Granted for Transfer of Individual Investors (Corrected)

The Puerto Rican Department of Treasury Jan. 21 issued Informative Bulletin No. 22-02, clarifying the consequences of revoking the tax exemption for individuals due to non-compliance, granted under the Act to Encourage the Transfer of Individual Investors to Puerto Rico. The bulletin includes that: 1) computed net income reported as exempt income is subject to taxes, with interest, from the date such tax would’ve been due except for the decree; 2) taxpayers who’ve received a tax exemption decree revocation order must amend their relevant tax returns and determine and pay applicable income taxes; and 3) penalties apply for non-compliance. The ...